One of the Reasons That the FOMC Lowered Its Target

question 116

Multiple Choice

One of the reasons that the FOMC lowered its target for the federal funds rate in September 2007 was

• A)confidence that the fallout from rising mortgage default rates would not spread to the wider economy
• B)the belief that lenders would respond to the housing crisis by loosening lending standards
• C)more easily available credit boosting investment and economic growth
• D)to add liquidity to financial markets and strengthen the economy
• E)All of the answers are correct

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